Dine Brands Global (NYSE:DIN) reported a fourth-quarter net loss of $12.3 million on Wednesday, as a significant non-cash impairment charge overshadowed a rise in total revenue.
The parent company of Applebee’s, IHOP, and Fuzzy’s Taco Shop posted a loss of $0.93 per diluted share, a sharp reversal from the net income of $5 million, or $0.34 per share, recorded in the fourth quarter of 2024.
The quarterly loss was primarily driven by a $29 million impairment charge related to an intangible asset.
However, on an adjusted basis—which excludes the impairment and other non-recurring items—Dine Brands saw growth.
Non-GAAP adjusted net income rose to $19.4 million, or $1.46 per diluted share, up from $12.9 million, or $0.87 per share, in the prior year.
Total revenues for the quarter increased 6.3% to $217.6 million.
This growth was largely the result of the company’s strategic shift to acquire franchised Applebee’s and IHOP restaurants, shifting those locations into the "company-owned" sales column.
This transition also led to a corresponding decrease in franchise revenues as the number of third-party operated sites declined.
Operationally, the company’s core brands showed resilience.
Consolidated adjusted EBITDA grew to $59.8 million for the quarter, compared to $50.1 million a year ago.
During the quarter, IHOP saw a modest 0.3% increase in domestic comparable same-restaurant sales, while Applebee’s experienced a slight 0.4% dip.
Meanwhile, development remained active, with franchisees opening 40 new locations during the quarter, offset by 13 closures.